For example, project management app Trello’s value proposition says, “Trello gives you perspective over all your projects, at work and at home.”

Focusing on the value of the Trello app shows users how they can incorporate it into their daily lives. This approach is more beneficial than focusing on features: “We’re the best project management tool in the app store.”

This means that users should be able to access most of the main features – enough to fulfill your value proposition. But, the features in premium should also be compelling and substantial enough that it’s worth buying.

What Are Subscription-Based Mobile Apps?

Subscription-based mobile apps offer a free version, or free features, with the option to add on a subscription.

Consider the popular music streaming app Spotify.

Users can download the app and listen to their favorite artists for free. But, music listening is limited to “shuffling," or playing songs randomly, and users must listen to ads between songs.

For a monthly fee, users earn extra benefits such as ad removal, the ability to download music and unlimited song skips.

Spotify’s freemium model capitalizes on users’ desire to choose the songs they want to listen to and enjoy uninterrupted music.

Other mobile apps, like Tinder, offer multiple subscription-based tiers with an expanded set of features.

On Tinder, users pay $9.99/month for Plus, which includes unlimited likes and in-app purchases such as Super Likes, Boosts, and Like Rewards. Tinder Gold is an additional $4.99/month and allows users to see who has already liked them on the app.

Subscription apps work best when users can try the service before paying. If users begin to rely on the app, they are more likely to pay for extra features and benefits.

One approach for maintaining a strong group of paying users is to lower rates as users commit to your app for longer periods. For example, if they pay $9.99/month for a year, offer a single annual payment of $100 for the second year.

Track your results, and experiment to see what works best for your app and your users.

You may find that a combination of tactics, such as pairing a premium app with a freemium app (like SkyView), is best for generating revenue.

Or, you may find that a different monetization tactic is more effective than the first one you tried.

For example, Tinder experimented with in-app purchases previously, but Tinder’s current subscription tiers propelled the app to the top-grossing spot in the Apple App Store.

Make Money With Your Mobile App

As you decide how to make money with your mobile app, follow 3 steps:

Step 1: Define goals for monetizing your app

Step 2: Choose a mobile app monetization model

Step 3: Track app engagement and revenue

Ashley MacQuarrie

Writer

Ashley is a writer and content strategist who specializes in tech, marketing, and digital strategy. She's passionate about helping businesses tell their stories and build engaged online communities.

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